Zambia loses billions of funds in oil embezzlement scam

LUSAKA, April 11 (Xinhua) -- Zambia lost about 2 trillion Zambian Kwacha due to alleged embezzlement in the supply chain of petroleum products between 2007 and last year, state media reported on Wednesday.

According to a report of a Commission of Inquiry that was appointed by President Michael Sata in October last year to probe irregularities in the procurement of petroleum products by the country's Energy Regulation Board (ERB), the southern African nation lost the funds from the contracts awarded during the period because of malpractices, Times of Zambia said.

Chairman of the Commission, Wynter Kabimba said malpractices occurred in the Ministry of Energy and Water Development, Zambia Public Procurement Authority (ZPPA) and the ERB and has called for the arrest and prosecution of all culprits.

"The commission consequently recommends that the government through the law enforcement agencies should investigate individual officers and all companies involved in the oil procurement contracts, irregularities, malpractices and alleged acts of corruption during the period in question," he was quoted as saying when presenting the report to Sata.

The official further said some of the companies involved in the alleged malpractices in oil procurement have submitted bids for the 2012 oil procurement tenders.

The Zambian government has invited bidders for a new contract to supply petroleum products.

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